Momentaufnahme - 2019
Janet Mui: weekly economic update 11 October
There are signs of progress on the two key political risks facing markets: the US-China trade war and Brexit.
- Investors cheered news that senior negotiators from the US and China would meet for the first time since July to discuss a trade deal.
- With global economic data continuing to weaken, we believe that a comprehensive trade deal is essential to revitalise economic growth.
- Monthly GDP data for August suggests the UK will narrowly avoid a technical recession. We expect weak but positive growth in the third quarter.
- Late in the week, sterling and UK domestic equities rallied after Boris Johnson and Leo Varadkar said they could see a “pathway” to a Brexit deal.